EURUSD Weekly Outlook 19-23 Mar 2012

The EURUSD recovered in the last 2 days of the last week from all losses and closed at 1.3172 after testing 1.3000 levels!

The bullish correction happened last Friday was normal and it was expected fundamentally, the rise happened after U.S CPI data was released, but this bullish move was capped by strong resistance on daily chart at 1.3190 levels…

Here is a quick look at technical look for the next week!

Monthly Support & Resistance Levels: (Mar 2012)

Resistance: (1.3500) main, where correction is possible, break would test (1.3670), the next levels are (1.3840) and (1.4000)…For buyers the bullish zone is above 1.3500

Support :( 1.3150) main, where correction is possible, break would test (1.2980), the next levels are (1.2810) and (1.2640)…For sellers, the bearish zone is below (1.3150)...

The neutral zone is between (1.3150 - 1.3325) where it is recommended to evaluate activities on daily and weekly?!!

The pivot level for this month is (1.3325)…

Above 1.3500: Very Bullish Trend

Between 1.3325 - 1.3500: Light Bullish Trend

Between 1.3150 - 1.3325: Light Bearish Trend

Below 1.3150: Very Bearish Trend

Last week, the pair tested the first support level -1.2980- where strong correction usually finds, around this level 1.3003 pulled back strongly and closed above the main support 1.3150, giving us a light bearish trend...

What would happen next week?!!

After pulling back from the support area 1.2980 and breaking above 1.3150; I think we should test the monthly pivot 1.3325 before falling again?!!

Medium – term Trend Direction: I turned from bearish to sideways.

WeeklySupport & Resistance Levels: (19-23 Mar 2012)

Resistance: (1.3240) main, where correction is possible, break would test (1.3300), the next levels are (1.3360) and (1.3420)…For buyers the bullish zone is above 1.3240.

Support :( 1.3110) main, where correction is possible, break would test (1.3050), the next levels are (1.2990) and (1.2930)…For sellers, the bearish zone is below (1.3110)...

The neutral zone is between (1.3110 - 1.3240) where it is recommended to evaluate activities on 60 min and 240 min chart ?!!!

The pivot level for this week is (1.3175)…

Above 1.3240: Very Bullish Trend

Between 1.3110 - 1.3175: Light Bullish Trend

Between 1.3110 - 1.3050: Light Bearish Trend

Below 1.3050: Very Bearish Trend

Recommendations:Observing trading on 60 min and 240 min ; anticipating long around the support area 1.3110/1.3050, and anticipating short around the resistance area 1.3240/1.3300…

If you read my previous blogs last week, you should notice that I sold the silver below 33.10..the pair declined towards the suggested support around 31.60 in matter of hours..

Now the level 33.10 turns to be a separated level between buyers and sellers...

H1 close above this level is gonna open too many doors to reach 34.40 levels but I think it's not easy at all..

Last week (Wednesday) RSI on 60 min chart, suggested a bullish correction towards 32.70/90 area before testing 32.40 / 31.60 area once again...later it tested this level and declined towards 32.12 and didn't able to break below 31.60 levels...

What options do we have ?!!

We can short now below 33.10 around 32.70 and stop out with an hourly close above 33.10 but we have light bullish trend on 60 min , it may push higher and try to take 33.10 out..

For high probability trade a 30 min close below 32.12 is supposed to break below 31.60 and test 30.00 levels..